Twin Cities gas prices surge 15 cents overnight as business owners feel the pinch
Gas prices jumped 15 cents in the Twin Cities overnight. Drivers are now paying on average $4.43 to fill up with regular gas, up 44 cents from a month ago.
"I'm hearing what other industries are facing. They're telling me in real time what they're seeing," said Chey Eisenman, owner of Twin Cities luxury car service Chey Car.
Eisenman gets an earful from business leaders in the backseat on her daily drives.
"Some of the surge in cost to businesses right now to move a product is in the 40% to 45% range in just the last two weeks. That's dramatic," said Eisenman, adding that she's feeling it herself too.
AAA data shows the price of gas on average is up at least 45% since the War in Iran began Feb. 28.
"I'm feeling the pressures many small businesses are facing. The margin compression and rising costs," said Eisenman.
You're probably thinking Hennepin and Ramsey are the counties with the highest costs; they're close, but it's actually Dakota County, according to AAA.
When it comes to diesel, prices hit $6.05 a gallon on average nationwide, hitting a new record.
"When that happens, it's a shock to the system. It's a cash management challenge," said John Hausladen, the president of Minnesota Trucking Association. The Minnesota Trucking Association represents nearly 500 fleets statewide.
"If you've got it, a truck brought it... trucks run on diesel," said Hausladen.
He says ongoing costs for truck maintenance and insurance have also gone up.
"This is the third year of a trucking recession. Rates have been depressed for a long time," Hausladen told WCCO.
When it comes to what determines the price, GasBuddy says crude oil prices are the biggest factor and price fluctuation can be challenging.
"As long as things stay stable, we're headed into our busy season," Eisenman added. "I'm not sure what we even know what's coming."
President Trump has said high oil prices caused by the Iran war probably won't come down until after the midterm elections in November.
